EDFI Carbon Sinks Program Managed by EDFI MC supports DEG’s Investment in BNPP AM Alts’ Natural Capital and Impact Strategy

Scaling nature‑based solutions to tackle climate and biodiversity challenges in emerging and developing markets

Brussels, Belgium – 19 March 2026 – EDFI Management Company (EDFI MC) announced its support through its EDFI Carbon Sinks guarantee program, an EFSD+ guarantee funded by the European Union, for DEG’s USD 22.5 million equity investment in the BNP Paribas Asset Management Alts’ (BNPP AM Alts)¹ Natural Capital and Impact investment strategy. The strategy targets high‑integrity nature‑based solutions that address the twin crises of climate change and biodiversity loss, while supporting the economic inclusion of communities in both eligible and priority countries.

Building off BNPP AM Alts’ long-standing expertise in land-based assets and impact investments, the Natural Capital and Impact investments strategy invests in a diversified portfolio of projects using natural carbon sinks for climate mitigation through removed or avoided emissions. It supports a mix of afforestation and reforestation projects, preservation of primary forests, agroforestry, and the restoration of peatlands, wetlands and coastal ecosystems such as mangroves. It also backs initiatives that increase access to environmentally friendly household devices, such as biodigesters or improved cookstoves, which help avoid emissions and improve living conditions.

The EDFI Carbon Sinks guarantee program is a joint initiative of the members of the EDFI Association and EDFI MC under EFSD+, the financing arm of the EU Global Gateway. It is designed to de‑risk and scale up equity investments by European development finance institutions and their co‑investors in forestry, regenerative agribusiness and other nature‑based businesses that develop high‑integrity carbon sink projects. By providing portfolio guarantees, the program aims to mobilise additional private capital into emerging and developing economies, accelerate climate mitigation and adaptation, and deliver measurable benefits for biodiversity and local communities.

DEG’s equity investment in BNPP AM Alts’ Natural Capital and Impact investments strategy is secured  by a guarantee cover under the EDFI Carbon Sinks program. By anchoring the strategy with patient, risk‑tolerant capital, DEG’s participation is expected to help crowd in additional public and private investors and support the scaling of nature‑based climate solutions in emerging and developing markets.

Monika Beck, member of the Management Board of DEG, said: ”DEG is committed to investing in impactful and climate-conscious projects, with biodiversity protection being a particular focus. By providing long-term funds, DEG will support nature-based projects which lead to carbon or other greenhouse gas reduction and sequestration. These investments are well aligned with our commitment to sustainable development and climate action.”

BNPP AM Alts’ Natural Capital and Impact investments strategy follows a distinctive two‑pronged investment strategy. First, it invests strategic equity stakes in carbon project developers, becoming a shareholder and supporting them in professionalising their business models and environmental, social and governance (ESG) management systems. Second, it directly invests in nature‑based solution projects that generate carbon credits, which are then offered to end-buyers via long‑term offtake agreements or on the spot market, primarily to corporate buyers with voluntary climate commitments. This model is designed to generate environmental impact and social co-benefits alongside financial returns for its investors.

Investments by BNPP AM Alts’ Natural Capital and Impact investments strategy will be made through a range of instruments, including equity, equity‑like instruments, Emission Reduction Purchase Agreements (ERPAs) and project financing debt instruments. Across its portfolio, the strategy’s projects will systematically integrate local communities and indigenous peoples where applicable, providing co‑benefits such as biodiversity gains, improved livelihoods and broader economic development. By focusing on high‑integrity nature‑based solutions and robust community engagement, the strategy seeks to deliver durable climate outcomes alongside strong social and environmental impacts.

¹ BNP Paribas Cardif’s acquisition of AXA Investment Managers, completed last year, led to the creation of a single asset management platform that consolidates all activities from AXA IM, BNPP REIM, and BNPP AM under unified ownership. AXA IM Alts has become BNP Paribas Asset Management Alts.

About EDFI Management Company:

EDFI MC is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit  www.edfimc.eu.

EDFI Carbon Sinks is a joint guarantee programme designed by the members of the EDFI Association and EDFI MC under EFSD+, the financing arm of EU Global Gateway. The programme is designed to support European Development Finance Institutions (EDFIs) and their private and public co-investors to scale up equity investments in forestry and regenerative agribusiness companies investing in carbon sink projects. More information can be found here: https://edfimc.eu/what-we-do/edfi-carbon-sinks/  

About DEG

For more than 60 years, DEG has been financing and advising private enterprises operating in developing and emerging-market countries. With a portfolio of around EUR 11.6 billion DEG is one of the largest private-sector development financiers. As an impact and climate investor it accompanies companies that are addressing transformation and aiming to seize their opportunities. DEG’s customers not only receive financing and advisory solutions tailored to their needs: they can build on DEG’s market knowledge, impact and climate expertise and international network. In this way, DEG, a subsidiary of KfW, contributes to creating more skilled jobs and local income and to improving value creation on the ground in line with the SDGs.

Learn more: www.deginvest.de

About BNP Paribas Asset Management Alts

BNP Paribas Asset Management Alts (BNPP AM Alts) is the alternative investments platform of BNP Paribas Asset Management. It is the largest alternatives asset manager in Europe and a global leader, with approximately €300 billion in assets under management across Real Estate, Infrastructure, Alternative Credit and Private Equity. 

With more than 30-year track record, BNPP AM Alts has built a reputation as a pioneering and innovative asset manager, combining an entrepreneurial investment culture with strategic discipline.

BNPP AM Alts finances the real economy by providing equity and debt to help companies to expand by developing, managing and financing infrastructure and buildings essential to economic growth.

Sustainability is at the core of our investment decision-making processes, with a particular focus on decarbonization.